The future of MassRoots remains uncertain.
MassRoots Inc. has created a social media platform that has often been called ‘the Facebook of pot.” The approximately 900,000 users on MassRoots can share cannabis stories and pictures without fear of having their accounts shut down or suspended.
But the cannabis-friendly platform may not be able to remain online for long. According to a filing made on September 21 with the U.S. Securities and Exchange Commission, MassRoots was unable to make a payment of $966,000 to creditors.
The company is trying to salvage a difficult situation and has cut costs by reducing its workforce from 33 to 19 full-time positions and employing new technology expected to reduce operating costs by $146,000 per month.
“It’s not an ideal situation, by any stretch of the imagination,” Isaac Dietrich, MassRoots chairman and chief executive officer, told Business Den.
This has been a difficult year for the social media company. It was the main sponsor of the 420 Rally Event in Denver. The event was canceled due to inclement weather and those who bought tickets were eligible for a refund.
“It was a missed opportunity more than anything,” Dietrich said.
MassRoots’ run of bad luck continued. In May it was denied a listing on the Nasdaq exchange. The company’s value was sliced in half and the confidence of its investors was shaken.
“This is kind of the worst-case scenario, in many regards,” Dietrich said.
But there are some positives in the forecast for MassRoots. Its social media platform grows by approximately 30,000 users per month. The company is now focused on offering new services such as a dispensary finder, product reviews, and real-time menu pricing.
“The problem over the past year was not our user base, it was that our product was failing to connect users with products and dispensaries effectively,” Dietrich told Cannabist. “We believe that once product reviews and menu prices are released within the next few weeks, our mobile applications will offer similar capabilities as both (competitors) Leafly and Weedmaps within a unique social experience.”
We reached out to MassRoots for comment and are awaiting a response.